All Forum Posts by: Wyatt Franta

Hey Loren,

I replied to Allen who asked a similar question, I'll post that response below.

What I always recommend is to start making friends around town. You never know what situation a person is in, you may not be aware they would never sell a home through a Realtor, and you may not know they've had their home listed as a FSBO for the past two months with zero traction.

On top of that, mailers & canvassing neighborhoods looking for the odd house out of the bunch are good options as well.

I've personally never wholesaled before as I got my license when I first started out, but a wholesaler's method isn't much different than a Realtors at the end of the day.

Hey Brett,

The first rule of real estate is to get everything in writing. There are many, many wonderful and outstanding people in this world who make our industry fun and worthwhile to be a part of. However, it only takes one bad person to completely ruin our experience, and we need always be prepared for them as you never know who the bad guy is until it's too late.

For next time, find an assignment contract template that outlines the deal involved and the specifications involved.

I hope this deal worked out for you, and the seller was a man of his word and paid you for your ability to connect them with an off-market buyer.

Hey Michael,

I've heard good things about Utopia Property Management, and I've worked alongside them with rental clients. They've been pretty responsive and easy to work with each time.

You're welcome. Feel free to connect with me if you have any questions that need answering later on.

Hey Patrick,

Unfortunately, the ADA/ESA laws are being taken advantage of in ways medical professionals more than likely didn't see coming. Today a larger-than-anticipated number of tenants have service animals, and I've seen the full gambit in CA. It isn't a free service, from what I've seen, I believe the costs range from $100-200 per cert. per animal.

You are allowed to ask for official documentation from the medical/mental professional who provided the ESA/ADA certification to verify the legitimacy of the animal. Outside of that, there isn't much landlords can do without getting close to the legal fine line.

If the service animal causes damage to the property or puts other tenants at risk, you may be allowed to evict them, but I would still seek an attorney or further assistance from the ADA before doing so.

I would first take a look at the comps. Look at the specs (beds, baths, SF, lot size, etc.) Drive-by them and observe their curb appeal. The highest-priced comp will usually have the best curb appeal, as first impressions are everything in real estate. 

When you begin creating a budget for the renovation phase, add an additional 10% as a buffer. Real estate rarely goes as planned, and you need to factor those unknowns as an expense.

The dream is to acquire a home at 70-75% ARV. But, in most markets these days, 80-85% is more realistic.

Hi Aman,

This is a negotiation situation. You need to figure out more details before bringing any solutions to the table. Here are some stand-outs you mentioned you can use as leverage.

- Why can't you afford a higher rent, is business struggling?

- Since you're considering a buy-out, have you been looking to leave this plaza (center, strip, etc.)?

- Do you have a place of relocation in mind if I were to buy-out your lease?

Using that information, you can get a better understanding of what's really going on. If they want to leave, instead of buying out their lease, offer to assist in relocation costs. Pay for trucks, movers, etc. Help them leave on good terms, and that way you won't have resentful ex-tenants.

If they really want to stay, and they really can't afford to pay a higher rent, offer a percentage rent lease solution. After their net sales hit $xxx,xxx for that year, every dollar they make from then on, you get 4-7%. This way, their rent stays the same, and when you're able to drive more traffic to their location, you both share in the additional profits.

Just some ideas, but it will depend on your situation.

There really isn't, unfortunately. What I always recommend is to start making friends around town. You never know what situation a person is in, you may not be aware they would never sell a home through a Realtor, and you may not know they've had their home listed as a FSBO for the past two months with zero traction.

On top of that, mailers, bandit signs, canvas neighborhoods looking for the odd house out of the bunch are your best bets as well.  

Hey Steve,

@Kenneth Garrett is correct here. Zillow is going to be your most time-efficient value-basis software. However, it is far from perfect. As a Realtor in CA, I've had homeowners send me their Zillow home values, only to find out the software has their home +- $100k (8-10%) or more of their actual value when I ran comps. 

If you have any Realtor friends who you can trust to run comps, always go that route. It will usually be the best way to verify ARV, and assist you in making a smart offer

Hey Alexis,

You don't. 

Any property that goes on the MLS is off-limits to opportunistic investors as normal home buyers will outbid them 99% of the time. If you want to find sellers willing to sell well below market value, you need to find homeowners who need money ASAP, or who inherited the home via a death in the family and just want to cash out and move on.